The market size of cyclopentane is estimated at USD 242.4 million in 2018 and is projected to reach USD 335.7 million by 2023, at a CAGR of 6.7%. The major driver for the market includes the increasing use of environmentally friendly blowing agents after the phase-out of HCFCs by late 2040s.
The cyclopentane market has been classified on the basis of function and application. The market is classified into blowing agent & refrigerant, solvent & reagent, and others, based on function. Cyclopentane is widely used as a blowing agent & refrigerant owing to stringent regulations such as Montreal Protocol, which have reduced the use of existing blowing agents having a high ODP and GWP.

On the basis of application, residential refrigerants is the largest application in the cyclopentane market. The demand for cyclopentane for residential refrigerants is driven by the reduced use of fluorinated blowing agents in this application owing to the stringent regulations. Cyclopentane is a cheap substitute for the existing blowing agents in this application.

By region, the market is segregated into APAC, Europe, North America, South America, and the Middle East & Africa. APAC is the largest and fastest-growing market for cyclopentane. According to the International Monetary Fund (IMF), China and India are two of the fastest-growing economies in the world. India is expected to overtake China with the highest growth rate, thus, driving the global economy. With such a growth rate in these countries, the cyclopentane market is also projected to register a high growth rate in the future.

The major restraint for the cyclopentane market is the high capital investments involved in setting up a production plant. This is because cyclopentane is flammable in nature and, hence, requires additional cost in setting up a plant that has precautionary measures for reducing the risk of fires.

Competition among these players is moderate, as the top companies have a strong foothold in the market and, hence, have a large market share. Many of the players are not involved in undertaking any growth strategies.

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